• Annual recurring revenue (ARR) grew 25% to $12.1m
• Paid mobile subscribers increased 44% year-on-year to 44.4k
• Operating expenses reduced by 11% to $12.5m

Spacetalk Ltd (ASX: SPA) reported its audited results for the full year ended 30 June 2025 (FY25), highlighting a transformative year for the company. Key performance highlights include: 25% growth in annual recurring revenue (ARR) to $12.1m, 44% increase in paid mobile subscribers to 44.4k, 12% increase in revenue from continuing operations to $19.6m, and an 11% reduction in operating expenses to $12.5m. Gross profit reached $9.7m, with margins improving slightly by 1 percentage point to 50%, demonstrating the company's ability to scale without sacrificing profitability. Adjusted EBITDA improved by 57% to ($1.9m), a significant step towards profitability and evidence of the improving scalability of the business model. The company ended the year with a cash balance of $1.1m. Subsequent to the year-end, Spacetalk's lender, Pure Asset Management, agreed to convert $1m in secured debt for 1,000,000 Converting Notes, reducing the debt facility balance to $3.6m. Pure also committed to suspend all capital repayments for the remainder of the 2025 calendar year and to extend the maturity date of the remaining loan facility by three months to 30 June 2027.

In the year ahead, Spacetalk expects to further drive subscriptions and platform engagement with a major upgrade to its mobile app, plus the development of next-gen kids and seniors wearables. The company remains focused on its path to $20-25M ARR in 2026.